> I don't understand the ire against share buybacks. They're just a more tax efficient and flexible form of dividends to shareholders than traditional cash dividends.
Not OP, and I think his ire is misplaced here... but MY ire against share buybacks is because the flexibility is misused.
Setting aside taxes - share repurchases benefit stockholders more than dividends when a company's shares are undervalued; the converse is also true. However, management's incentive tends to be to maximize their comp (particularly stock options) by juicing the stock as it rises. Companies usually buy high, and suspend share repurchases when the stock is low.
There are exceptions; AAPL corporate finance does a great job. But as a rule, company treasuries do a lousy job of trading in their own shares because of poorly aligned incentives.
Not OP, and I think his ire is misplaced here... but MY ire against share buybacks is because the flexibility is misused.
Setting aside taxes - share repurchases benefit stockholders more than dividends when a company's shares are undervalued; the converse is also true. However, management's incentive tends to be to maximize their comp (particularly stock options) by juicing the stock as it rises. Companies usually buy high, and suspend share repurchases when the stock is low.
There are exceptions; AAPL corporate finance does a great job. But as a rule, company treasuries do a lousy job of trading in their own shares because of poorly aligned incentives.